This video shows the gun market of Durra, Pakistan, where guns and ammo are manufactured by hand and then sold.

Some gun shops in the western world frown upon dry firing before purchasing, in Dura, you live fire guns in the street before purchasing them!

The World Press online has a very interesting article about the gun markets in Pakistan

Browsing past rows of neatly stacked assault weapons, he settles on a .30-caliber Pakistani-made copy of a Russian pistol. After a round of friendly bargaining, the gun dealer eventually agrees to Mirzalkhel’s $30 offer. The deal is sealed with a test firing and a handshake.

UPDATE:

LT Rob Lyon (from the Rob’s Gun Shopping Journey blog) who is currently stationed in Iraq posted a comment on this page about arms in Iraq

In Iraq the cost of firearms will vary depending where you get them. The Multi National Security Transition Command is working hard on getting American arms into the hands of Police and Military. These are being assigned to individuals as well as collecting biometrics of those individuals. This is a pretty expensive process. Overall arms are pretty scarce on the open market. Up north and in some of the more remote regions a 9mm handgun can be had for about 20 to 45 USD. I wouldn’t expect it to be to shelf, but it will go bang. A proof firing is usually part of the deal. I don’t see that happening in the US. Buy not a bad idea.